So we have a client who was in partnership with his sister. She passed away in May 2016.
Year end for partnership was 31/12
If we cease the partnership when she passes away he becomes a sole trader. Is his first BP therefore from May 2016 up to 5th April 2017 or is there anyway we can keep the year end as 31/12?
Replies (3)
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So his basis period doesn't change if you don't change his year end.
But you will have to split the profits ante and post mortem.
Pretty basic stuff so basic in fact I am not going to answer it other than give you some advice - book yourself immediately on a basic tax course.
You should refer this to an accountant. They will be able to handle it with their eyes closed.